calbudgetcenter.org Strategic and Targeted Policies to Address the COVID ‐ 19 Crisis CHRIS HOENE, EXECUTIVE DIRECTOR PHILANTHROPY CALIFORNIA POLICY SUMMIT APRIL 20, 2020 @ChrisWHoene @CalBudgetCenter
Who are the Workers and Families Most Affected by the Economic Implications of COVID ‐ 19? | 2
Nearly 1 in 3 Californians Live in a Household That Includes a Worker in an Industry Highly Affected by COVID ‐ 19 Shutdowns Share of Californians, 2018 Note: Highly affected industries are defined as industries directly disrupted by business closures and reduced demand due to COVID ‐ 19 public health stay ‐ at ‐ home orders, such as retail, restaurants, travel and tourism, arts and entertainment, personal services, and landscaping and building services. Source: Budget Center analysis of US Census Bureau, American Community Survey public ‐ use microdata for California for 2018, downloaded from IPUMS USA (University of Minnesota, www.ipums.org) | 3
Many Californians Across the State Live With Workers in Industries Highly Affected by the COVID ‐ 19 Shutdown Share of Californians By Region, 2018 Note: Highly affected industries are defined as industries directly disrupted by business closures and reduced demand due to COVID ‐ 19 public health stay ‐ at ‐ home orders, such as retail, restaurants, travel and tourism, arts and entertainment, personal services, and landscaping and building services. Source: Budget Center analysis of US Census Bureau, American Community Survey public ‐ use microdata for California for 2018, downloaded from IPUMS USA (University of Minnesota, www.ipums.org) | 4
Nearly 2 in 3 California Workers in Industries Highly Affected by the COVID ‐ 19 Economic Shutdown Are People of Color Share of California Workers in Highly Affected Industries, 2018 Note: Highly affected industries are defined as industries directly disrupted by business closures and reduced demand due to COVID ‐ 19 public health stay ‐ at ‐ home orders, such as retail, restaurants, travel and tourism, arts and entertainment, personal services, and landscaping and building services. Source: Budget Center analysis of US Census Bureau, American Community Survey public ‐ use microdata for California for 2018, downloaded from IPUMS USA (University of Minnesota, www.ipums.org) | 5
More Than 1 in 3 Latinx Children Live With a Worker in an Industry Highly Affected by the COVID ‐ 19 Economic Shutdown Share of California Children, 2018 Note: Highly affected industries are defined as industries directly disrupted by business closures and reduced demand due to COVID ‐ 19 public health stay ‐ at ‐ home orders, such as retail, restaurants, travel and tourism, arts and entertainment, personal services, and landscaping and building services. Source: Budget Center analysis of US Census Bureau, American Community Survey public ‐ use microdata for California for 2018, downloaded from IPUMS USA (University of Minnesota, www.ipums.org) | 6
1 in 3 Undocumented Workers in California Is Employed in an Industry Highly Affected by the COVID ‐ 19 Economic Shutdown Estimated Share of Undocumented Workers, 2018 Note: Highly affected industries are defined as industries directly disrupted by business closures and reduced demand due to COVID ‐ 19 public health stay ‐ at ‐ home orders, such as retail, restaurants, travel and tourism, arts and entertainment, personal services, and landscaping and building services. Source: Budget Center analysis of US Census Bureau, American Community Survey public ‐ use microdata downloaded from IPUMS USA (University of Minnesota, www.ipums.org), with immigration status imputed using methods developed for the California Poverty Measure, a joint project of the Public Policy Institute of | 7 California and the Stanford Center on Poverty and Inequality
2 in 3 Californians Who Are Undocumented Have Lived in the US for a Decade or Longer Estimated Share of Undocumented Californians, 2018 Source: Budget Center analysis of US Census Bureau, American Community Survey public ‐ use microdata downloaded from IPUMS USA (University of Minnesota, www.ipums.org), with immigration status imputed using methods developed for the California Poverty Measure, a joint project of the Public Policy Institute of | 8 California and the Stanford Center on Poverty and Inequality
Nearly 9 in 10 Undocumented Californians Who Are Parents Live With US Citizen Children Estimated Share of Undocumented Parents, 2018 Source: Budget Center analysis of US Census Bureau, American Community Survey public ‐ use microdata downloaded from IPUMS USA (University of Minnesota, www.ipums.org), with immigration status imputed using methods developed for the California Poverty Measure, a joint project of the Public Policy Institute of | 9 California and the Stanford Center on Poverty and Inequality
Federal Fiscal Relief, Gaps, and State Responses | 10
Federal Fiscal Relief: Three Packages • Coronavirus Preparedness and Response Supplemental Appropriations Act 3/6: $8.3 billion for federal, state, local, and community public health response efforts and loans for small businesses. • Families First Coronavirus Response Act (FFCRA) 3/18: $200 billion for paid sick and family leave protections, food assistance, and administrative support for states. • Coronavirus Aid, Relief, and Economic Security (CARES) Act 3/27: $2 trillion in one ‐ time cash rebates, unemployment benefits, loans for small businesses, direct funding for states ‐ local ‐ tribal governments, and array of additional supports. | 11
Recovery Rebates • One ‐ time cash payments of $1,200 per adult ($2,400 for married couples) and $500 per dependent child under age 17. – Individuals must have income of $75,000 or less. – Heads of households must have incomes of $112,500 or less. – Married couples must have incomes of $150,000 or less. • Caught in the Gap : – Undocumented individuals and their households. – People who didn’t file their taxes in 2018 or 2019 (non ‐ filers). • Closing the Gap – State Responses : – State and philanthropy providing $125 million in one ‐ time cash assistance for undocumented households. – State should include ITIN ‐ filers in the CalEITC. | 12
Exclusion of Many Immigrants and Their Children From Federal Recovery Rebates Makes Tax System More Unjust Two Children Whose Mother Worked Part ‐ Time at the State Minimum Wage in 2019 * SSN = Social Security Number valid for work. ITIN = Individual Taxpayer Identification Number. Note: Analysis assumes both children have SSNs. “After ‐ tax income” means income after filing taxes. These families do not owe any state or federal income tax so they receive the full value of the tax credits they qualify for as tax refunds. | 13 Source: Budget Center analysis of CARES Act, PL 116 ‐ 136 (2020), Section 17052 of the California Revenue and Taxation Code, and Section 32 of Title 26 of the Internal Revenue Code
Unemployment Insurance • Emergency unemployment assistance for people who lose work due to COVID ‐ 19 related circumstances. – Federal provision of $600 weekly on top of state UI through 7/31/20 (CA average is $330 weekly). – Extends the number of weeks workers can receive benefits (39 total weeks in CA). • Caught in the Gap : – People without work authorization (undocumented workers). • Closing the Gap – State Responses : – The state could create a wage replacement fund that provides payments to undocumented workers. | 14
Paid Leave • Federal provision of temporary additional paid leave. – 80 hours of paid sick time for workers to care for themselves or another individual. – Up to 12 weeks of job ‐ protected family and medical leave if workers must stay home due to school or child care closures. • Caught in the Gap : – Employees of firms with 500 or more employees, excluded from the federal relief – 44% of the CA workforce. • Closing the Gap – State Responses : – Governor issued an executive order requiring 2 weeks of leave for food sector workers. – Other sectors still not covered. | 15
Child Care • Federal relief provides $3.5 billion in funding through the Child Care Development Block Grant (CCDBG) ‐ $350 million to CA. – Supports child care assistance for essential workers, payments to child care providers, and sanitization of facilities. – $750 million for Head Start programs. • Caught in the Gap : – Many child care providers are closed or closing permanently. • Closing the Gap – State Responses : – Governor issued executive order suspending restrictions on state ‐ subsidized child care programs. – State may need to direct provision of care; make existing facilities grants available for operating costs. | 16
Food and Nutrition Assistance • Federal Relief – Suspends (SNAP/CalFresh) time limits for single adults under 50 without children. – Allows states to provide temporary (SNAP/CalFresh) benefits up to the maximum benefit level; administrative flexibility. – More than $1 billion for WIC, food banks, and meals for older adults, people with disabilities, and their caregivers. • Caught in the Gap : – Relief fails to meet level of demand due to the crisis. • Closing the Gap – Federal and State Responses : – State should focus on ensuring participation. – Additional federal relief needed. | 17
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